StochasticsThe Stochastics chart draws two lines, the faster line is formed by comparing
the last closing price to recent trading range, that is the highest high in
the last n-periods minus the lowest low in the same period. The slower line
is formed by smoothing the fast line with a moving average (EMA).
Finally you may choose what we slow stochastics, in which we plot the smoothed slower line above as the fast line on the plot, and we then take a moving
average (EMA) of this line as the slow line.
Using the edit button on the studies tool bar, you can adjust the periods of
each of the moving averages (EMA), and choose fast or slow Stochastics.
The signals in Stochastic are.
Buy when the stochastics are below %20 (oversold), and either move back above
%20 or form a higher low then its previous low. Or buy when the fast line
crosses above the slow line.
Similar, Sell when the stochastics are above %80 (overbrough), and either move
down below %80 or form a low high than is previous high. Or sell when the fast line crosses below the fast line.
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